A partnership between U.S. Bank and a Colorado nonprofit developer has paved the way for the construction of affordable senior housing apartments in the Denver area.
U.S. Bank and InnovAge, a nonprofit organization serving Colorado’s aging population, announced yesterday that they have closed on a $22.4 million financing package that will create InnovAge Senior Housing-Thornton, a 72-unit senior housing apartment building in the city of Thornton located eight miles north of Denver.
Thornton’s demographic shift in the rising number of elderly residents has spawned the need for such a partnership to develop affordable housing for the area’s rapidly aging population.
“The senior population in Thornton is growing rapidly, outpacing growth in both the Denver metropolitan area and across the county,” said Hassan Salem, Denver market president for U.S. Bank. “InnovAge Senior Housing-Thornton will help fill a void of limited housing that targets seniors, while fostering independent living in a community environment.”
U.S. Bank’s commitment to the project involves more than $9.6 million of Low-Income Housing Tax Credit equity through its community investment subsidiary U.S. Bancorp Community Development Corporation, and more than $12.8 million of loans toward the financing of the project.
The tax credits were allocated by the Colorado Housing and Finance Authority and are being capitalized by U.S. Bank’s subsidiary to allow the housing units to be rented at below-market, affordable rates to eligible seniors.
“We’re dedicated to making personalized senior care decisions simple and affordable,” said Maureen Hewitt, CEO of InnovAge. “Combining our existing healthcare, home care and support services with affordable housing options increases our ability to help aging adults continue to live in their communities with dignity and independence. We appreciate U.S. Bank’s support of our efforts.”
The InnovAge Senior Housing-Thornton is the organization’s first ground-up construction of an affordable, independent senior housing development. The development is also the nonprofit’s first partnership with U.S. Bank.
The four-story building will feature 50 one-bedroom units and 22 two-bedroom units marketed to seniors age 55 and older whose annual income is less than 30%-60% of the average median income in Thornton. Rents start at $438 per month of a one-bedroom, one bathroom unit.
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Each apartment will support independent living with a full kitchen, energy star appliances, washers and dryers and a balcony or patio. The community will also feature a sun room, beauty salon, exercise room, theater room, community garden and outdoor courtyard.
While the project might be the first partnership between InnovAge and U.S. Bank, the bank is no stranger to financing affordable developments.
Recently, U.S. Bank provided $55.1 million to Long Beach, California-based Retirement Housing Foundation for the development of two affordable senior housing communities in Los Angeles: Broadwood Terrace and Las Alturas.
For these developments, U.S. Bank provided $24.9 million in construction debt, as well as $30.2 million in Low-Income Housing Tax Credit through its U.S. Bancorp subsidiary, according to a National Real Estate Investor article. The company also provided $1 million for construction capital.
With more than $11.7 billion in managed assets as of June 30, 2013, the U.S. Bancorp Community Development Corporation subsidiary has provided financing solutions for community development projects nationwide using state and federally sponsored tax credit programs.
The subsidiary’s projects include investments in the construction of affordable and market-rate homes, rehabilitation of historic buildings, as well as the generation of commercial economic activity in underserved communities.
Written by Jason Oliva